Venezuela Real Estate Report Q2 2011: New research report available at Fast Market Research

March 23, 2011 - PRLog -- We have revised our real GDP growth forecasts for Venezuela, now projecting 1.9% in 2011 and 2.3% in 2012 (from 3.2% and 2.8% respectively), up from an estimated contraction of 2.0% in 2010. While we are still forecasting steady real GDP growth in the medium term, we caution that structural imbalances in the economy are only likely to deepen as there is little to suggest that President Hugo ChAvez's distortive policy mix will let up any time soon.

In spite of this positive news, monetisation of government spending continues to fuel inflation and inflation expectations. This continues to influence protagonists' behaviour in Venezuela's real estate markets. Rents and nominal capital values have typically risen by 20-30% annually but are set to remain approximately stable over the coming year. Leases often run for no more than one year and tenants often attempt to benefit from the stability in capital values by buying the properties that they are renting.

It is hard to envisage that there will be substantial capital growth given an overall poor business environment. Short-term problems such as the lack of hydro-electric power are also having an adverse impact on demand for commercial property, although there are signs that the power shortage could be abating.

We are expecting rents to remain roughly stable in all monitored cities into 2011. However, in Venezuela's inflationary economic environment, we could see some changes tracking the rate of inflation.

Our latest figures indicate that on the whole, yields made slight to moderate gains in 2010 relative to 2009. In most countries, this would clearly be consistent with higher rents and/or lower capital values. In an economy that is as distorted by structural inflation as is Venezuela's, the reported changes are consistent with our view that yields have been fairly stable. For the city for which we have the firmest data, Caracas, we are forecasting yields to remain stable at 6-8% for 2011.

Our sources in Venezuela have confirmed that the few new commercial real estate projects under way in Caracas and elsewhere have been put on hold.

For more information or to purchase this report, go to:
-  http://www.fastmr.com/prod/127272_venezuela_real_estate_r...


Report Table of Contents:

SWOT Analysis
- Venezuela Real Estate/Construction SWOT
- Venezuela Economic SWOT
- Venezuela Business Environment SWOT
Real Estate Market Overview
- Table: Venezuela's Real Estate Market - Rentals, 2009 And 2010 (m2/month, US$)
- Table: Venezuela's Real Estate Market - Net Yields, 2010 And 2011 (%)
- Table: Venezuela's Real Estate Market - Terms Of Rental Contract/Lease, Mid-2010
Industry Forecast Scenario
- Table: Venezuela's Real Estate Market - Rentals, 2010-2012 (m2/month, US$)
- Table: Forecast Yield, 2008-2015 (%)
- Construction And Infrastructure Outlook
- Table: Venezuela Construction And Infrastructure Industry Data, 2007-2015
- Table: Venezuela Construction And Infrastructure Industry Data, 2012-2020
- Macroeconomic Outlook
- Table: Venezuela - Economic Activity
Business Environment
- Real Estate/Construction Business Environment Ratings
- Table: Latin America Business Environment Ratings
- Venezuela's RECBER
- Project Finance Ratings: Outlook For Americas
- Table: Design And Construction Rating
- Table: Commissioning And Operating Rating
- Table: Overall Project Finance Rating
- Venezuela's Business Environment
- Table: BMI Business And Operation Risk Ratings
- Table: BMI Legal Framework Rating
- Table: Labour Force Quality
- Table: Annual FDI Inflows Into Latin America, 2006-2008
- Table: Venezuela's Top Export Destinations, 2001-2008 (US$mn)
- Table: Trade And Investment Ratings
Company Monitor
- Oriente Entidad de Inversion Colectiva de Inmobiliaria CA
- Otepi
- Tecnoconsult
- Vepica
BMI Methodology
- How We Generate Our Industry Forecasts
- Construction Industry
- Bank Lending
- Real Estate/Construction Business Environment Rating
- Table: Weighting Of Indicators
- Project Finance Ratings Indicators
- Table: Design And Construction Phase
- Table: Commissioning And Operating Phase - Commercial Construction
- Table: Commissioning And Operating Phase - Energy And Utilities
- Table: Commissioning And Operating Phase - Transport
- Sources

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Fast Market Research is an online aggregator and distributor of market research and business information. We represent the world's top research publishers and analysts and provide quick and easy access to the best competitive intelligence available.